Abbott dislikes business incentive program

By Kiah Collier |
July 15, 2013
| Updated: July 15, 2013 11:21pm

Texas attorney general and Republican gubernatorial candidate Greg Abbott is welcomed by supporters Monday during a Houston appearance.

A day after announcing his 2014 bid for governor, Attorney General Greg Abbott visited Houston, where he expanded on a talking point made in his Sunday announcement: Texas needs to "get out of the business of picking winners and losers."

Some have taken that to mean Abbott would end the controversial business incentive programs championed by Gov. Rick Perry, which have awarded hundreds of millions of dollars to businesses to relocate or expand in Texas. The Texas Enterprise Fund and the Emerging Technology Fund are under the control of the governor's office.

At Goode's Armadillo Palace on Kirby, the second stop on a 10-city tour that will end Thursday in Austin, Abbott stopped short of saying he would do away with the incentive programs, but said "the best incentive for business is a good tax structure."

"If we can create the appropriate tax structure, that's going to be the strongest incentive any business needs, whether it be businesses thinking about relocating from California or businesses already here," the 55-year-old former state district judge and Texas Supreme Court justice said when asked if he would end the funds, if elected governor.

A campaign spokesman, asked to elaborate on Abbott's plans for the incentive funds, said the candidate will release "a number of policy proposals as the campaign moves forward."

Former state GOP Chairman Tom Pauken, Abbott's only competitor in next year's Republican primary so far, has been critical of the incentive funds and called the front-runner's comment "disingenuous" because he has "rubber stamped" all the incentive deals as attorney general.

"It's nice that suddenly Greg Abbott is completely reversing himself and agreeing with me on some of these issues now that he's a candidate for governor," Pauken said.

"We think that the funds are helpful in closing the deal and there is enormous competition among the many states for these projects," said TAB President Bill Hammond. "In fact, Texas probably does not offer nearly as many incentives as some other states do, so we think it's appropriate that we keep these funds in operation and it's our hope that the Legislature will decide to do that."

$12 million to Chevron

The most recent high-profile award from the Texas Enterprise Fund came earlier this month when Perry announced oil giant Chevron would receive $12 million from the state to build a new tower in downtown Houston.

Since its creation in 2003, the Texas Enterprise Fund has awarded more than $498 million to about 100 companies.The state's Emerging Technology Fund, created in 2005, has awarded more than $200 million to 140 "early stage companies," and another $216 million in matching grants and research funds.

Pauken said he would eliminate the Emerging Technology Fund, on "day one" as governor, and advocate for an overhaul of the Enterprise Fund, which he called a political "slush fund."

"I'm open to providing incentives to encourage companies to come to Texas but you've got to be very careful as to what those incentives are," he said.

Perry fatigue

Abbott on Monday generally deflected questions about what he would do differently than Perry, the state's longest-serving governor, but said he would bring "a completely different perspective to the office of governor," as a paraplegic, husband of a Latina and a former judge who employs a "methodical decision-making process, bringing in everyone, listening to all the answers, constantly striving to arrive at the right conclusion."

Jones said Perry fatigue contributes to the general voter distaste of the incentive funds, which he said have become "synonymous" with Perry.

He added, though, "Crony capitalism has a long history in Texas. Rick Perry didn't invent it, nor will it end when he leaves office."